Brokers' take

Singapore Telcos

DBS Group Research, Sept 21

It's too early to bargain hunt. Despite sharp decline in their share prices, M1 and StarHub may continue to spiral downwards. Potential new entrant may lead to a contraction in mobile sector revenue and secure 7 per cent revenue share by 2022 at the cost of the existing players. Recommend fully valued on M1 and StarHub from hold earlier as we switch from 50 per cent probability of a new entrant to 100 per cent and assume adequate funding in place for the new entrant. Our bear-case scenario seems quite likely. Both MyRepublic and TPG have a reputation of capturing subscribers through price competition, albeit in the fixed broadband segment.